Market may witness pull-back

Overnight gains in the US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from yesterday's losses. However, the market may exhibit caution owing to lack of clarity, higher volatility and the Sensex breaking the psychological level of 14100 towards the close yesterday. Among the indices, the Nifty could test higher levels at 4250 and 4300, and has a supports at 4180. The Sensex has a likely support at 13950 and may face resistance at 14150.

US indices bounced back sharply after surprisingly strong reading on second-quarter economic growth, and a rally in the financial sector. While the Dow Jones flared up by 213 points at 11,715, the Nasdaq moved up by 29 points at 2,412.

Indian ADR's had a mixed outing on the US bourses. VSNL was the major loser and tanked 3.33% while MTNL and Dr Reddy slumped over 1-2% each. Rediff, Tata Motors and Wipro ended with steady loss However, ICICI Bank jumped by 2.80%, HDFC Bank gained 2.47% and Patni Computer surged over 2.17% while Infosys and Satyam ended with the marginal gains.

Crude oil prices moved down as market watches a storm that could threaten critical oil production facilities in the Gulf of Mexico. Fall in natural gas prices pulls crude lower, with the Nymex light crude oil for September series sheded by $2.56 at $115.59 a barrel. In the commodity space, the Comex gold for December delivery flared up by $3.20 to settle at $837.20 a troy ounce.